Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Costco Wholesale Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Costco Wholesale Corp. net fixed asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Costco Wholesale Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Costco Wholesale Corp. total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Costco Wholesale Corp. equity turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Net Fixed Asset Turnover
Costco Wholesale Corp., net fixed asset turnover calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 249,625) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | |
| Property and equipment, net, including finance lease right-of-use assets | 30,465) | 28,009) | 26,266) | 24,492) | 22,399) | 21,241) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 8.19 | 8.49 | 8.48 | 7.84 | 7.29 | 7.03 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Dollar General Corp. | 6.36 | 7.23 | 7.87 | 8.65 | 8.47 | 8.63 | |
| Target Corp. | 3.20 | 3.41 | 3.71 | 3.44 | 2.93 | 2.92 | |
| Walmart Inc. | 5.51 | 5.73 | 5.74 | 5.77 | 4.74 | 4.58 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5.80 | 5.89 | 5.77 | 4.88 | 4.71 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Staples | — | 5.33 | 5.40 | 5.28 | 4.57 | 4.46 | |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, net, including finance lease right-of-use assets
= 249,625 ÷ 30,465 = 8.19
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Costco Wholesale Corp. net fixed asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Costco Wholesale Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 249,625) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | |
| Property and equipment, net, including finance lease right-of-use assets | 30,465) | 28,009) | 26,266) | 24,492) | 22,399) | 21,241) | |
| Operating lease right-of-use assets | 2,617) | 2,713) | 2,774) | 2,890) | 2,788) | —) | |
| Property and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | 33,082) | 30,722) | 29,040) | 27,382) | 25,187) | 21,241) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.55 | 7.74 | 7.67 | 7.01 | 6.48 | 7.03 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Dollar General Corp. | 2.25 | 2.38 | 2.37 | 2.52 | 2.30 | 8.63 | |
| Target Corp. | 2.90 | 3.15 | 3.40 | 3.17 | 2.70 | 2.71 | |
| Walmart Inc. | 4.93 | 5.08 | 5.04 | 5.05 | 4.09 | 4.58 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 4.94 | 4.97 | 4.86 | 4.09 | 4.66 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Staples | — | 4.64 | 4.68 | 4.57 | 3.93 | 4.35 | |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= 249,625 ÷ 33,082 = 7.55
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Costco Wholesale Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Total Asset Turnover
Costco Wholesale Corp., total asset turnover calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 249,625) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | |
| Total assets | 69,831) | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 3.57 | 3.45 | 3.47 | 3.24 | 2.94 | 3.29 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Dollar General Corp. | 1.26 | 1.30 | 1.30 | 1.30 | 1.22 | 1.94 | |
| Target Corp. | 1.91 | 2.02 | 1.94 | 1.80 | 1.80 | 1.80 | |
| Walmart Inc. | 2.55 | 2.49 | 2.32 | 2.20 | 2.20 | 2.33 | |
| Total Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 2.51 | 2.39 | 2.25 | 2.20 | 2.38 | |
| Total Asset Turnover, Industry | |||||||
| Consumer Staples | — | 1.55 | 1.51 | 1.45 | 1.35 | 1.43 | |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 249,625 ÷ 69,831 = 3.57
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Costco Wholesale Corp. total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Equity Turnover
Costco Wholesale Corp., equity turnover calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 249,625) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | |
| Total Costco stockholders’ equity | 23,622) | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 10.57 | 9.49 | 10.79 | 10.93 | 8.93 | 9.80 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Dollar General Corp. | 5.73 | 6.83 | 5.46 | 5.07 | 4.14 | 3.99 | |
| Target Corp. | 7.88 | 9.58 | 8.16 | 6.40 | 6.52 | 6.59 | |
| Walmart Inc. | 7.66 | 7.90 | 6.82 | 6.86 | 6.96 | 7.04 | |
| Equity Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.34 | 7.56 | 7.30 | 7.07 | 7.20 | |
| Equity Turnover, Industry | |||||||
| Consumer Staples | — | 6.50 | 6.04 | 5.82 | 5.62 | 5.45 | |
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
1 2024 Calculation
Equity turnover = Net sales ÷ Total Costco stockholders’ equity
= 249,625 ÷ 23,622 = 10.57
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Costco Wholesale Corp. equity turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |